Two smart home devices to drive industry growth named

Spending on automated home devices to hit $75 billion by 2025

Two smart home devices to drive industry growth named. Source: shutterstock.com

Global spending on automated home devices is expected to reach $75 billion by 2025, up from $23bn in 2018, according to the latest report by GlobalData.

Much of that growth will be driven by two types of devices: smart thermostats, which are becoming increasingly common as consumers and governments alike look to control energy consumption; and smart speakers, relatively recent entrants to the market (the first device, Amazon’s Echo, was only launched in 2014) that have proven to be phenomenally popular.

The advent of smart speakers has had a significant impact across the automated home, as they have enabled simple, voice-activated control of all types of smart devices and, thanks to their relatively low price point, offered an ideal entry point for customers that are curious about home automation. Their success has also turned the home into another front in the ongoing war between the giants of the technology industry, including Amazon, Google, Apple, Alibaba, and Samsung
Ed Thomas, Principal Analyst for GlobalData’s Technology Thematic Research team

The Echo range of smart speakers are the foundation of Amazon’s automated home business and the company has looked to build on that with acquisitions, including spending $1bn on smart doorbell manufacturer Ring. Google’s decision to bring its automated home business together under the Nest brand should help it compete better with Amazon. GlobalData notes that the Chinese market represents a significant opportunity, with Alibaba, Baidu, and Xiaomi the leading vendors.

SEE ALSO: Smart home technology: pros and cons

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